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Nvidia ( NVDA ) falls after Chinese regulator launches antitrust

probe

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Hershey jumps after report that Mondelez ( MDLZ ) exploring

acquisition

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Indexes down: Dow 0.54%, S&P 0.61%, Nasdaq 0.62%

(Adds market details after close of trading)

By Echo Wang

Dec 9 (Reuters) - Wall Street's main indexes closed

lower on Monday, driven by a drop in AI leader Nvidia ( NVDA ) that

weighed on tech stocks, as investors looked ahead to a crucial

inflation report set for later this week.

Nvidia ( NVDA ) fell 2.5% after China's market regulator

launched an investigation into the chipmaker over suspected

violation of antimonopoly law, dragging the information

technology sector down 0.45%.

Advanced Micro Devices ( AMD ) slipped 5.7% after BofA

Global Research downgraded its rating on the stock, weighing on

the Philadelphia Semiconductor Index, which slipped

0.87%.

"The market was taken a bit by surprise regarding China's

investigating (Nvidia ( NVDA )) as a possible antimonopoly-law violation.

So that's one thing that's putting a little damper on the

market," said Sam Stovall, chief investment strategist at CFRA

Research in New York.

The Dow Jones Industrial Average fell 240.59 points,

or 0.54%, to 44,401.93, the S&P 500 lost 37.42 points, or

0.61%, to 6,052.85 and the Nasdaq Composite lost 123.08

points, or 0.62%, to 19,736.69.

Nine out of 11 S&P 500 sectors lost ground, led by declines

in financial stocks.

Comcast ( CMCSA ) slid 9.5% after forecasting a loss of more

than 100,000 broadband subscribers in the fourth quarter,

denting the communication services sector by 1.3%.

Shares of Hershey surged 10.9% following a media

report that Cadbury parent Mondelez ( MDLZ ) was exploring an

acquisition of the chocolate maker. Mondelez ( MDLZ ) shares fell 2.3%.

Investors are anticipating the consumer price index (CPI)

data set for release on Wednesday, along with the producer price

index (PPI) on Thursday, ahead of the Federal Reserve's meeting

on Dec. 17-18.

Bets of a 25-basis-point rate cut at the upcoming meeting

shot up to more than 85% after data on Friday showed a rise in

the unemployment rate to 4.2% in November, indicating an easing

labor market.

Several Fed officials, including Chair Jerome Powell,

emphasized caution regarding the central bank's approach to

easing monetary policy due to the economy's resilience.

Wall Street's main indexes started December on a positive

note, with the benchmark S&P 500 and the tech-heavy

Nasdaq both gaining in their first week, while the

blue-chip Dow ended the week slightly lower.

On Monday, Workday rose 5.1% after S&P Dow Jones

Indices said last week the company would be added to the S&P 500

index.

Interpublic Group climbed 3.6% following a report

that marketing giant Omnicom ( OMC ) was in advanced talks to

acquire the advertising company. Omnicom ( OMC ) shares fell 10.3%.

U.S. stocks soared in November after Donald Trump won the

presidential election and his party secured control of both

houses of Congress, raising expectations for a more

business-friendly policy agenda.

Declining issues outnumbered advancers by a 1.24-to-1 ratio

on the NYSE. There were 216 new highs and 35 new lows on the

NYSE.

The S&P 500 posted 21 new 52-week highs and 2 new lows while

the Nasdaq Composite recorded 122 new highs and 60 new lows.

Volume on U.S. exchanges was 15.11 billion shares, compared

with the 14.46 billion average for the full session over the

last 20 trading days.